Nothing can hold back stocks. Precious metals are running on steroyds.

 

But it appears to an increasing number of observers, that the overwhelming argument for buyers today seems to be that they are  "missing out on something". Never mind anything else. That in itself is not a very good reason to buy into a "ripe" Bull Market.

 

But there is a quantum of solace surrounding the investment community these days, because (unlike before), todays investors consider themselves smart enough to exit the markets, 5 minutes before "the music stops". So, all is well. Or is it?

 

Same same as the dot com bubble. That took much longer than I expected to pop. Probably the same with the AI bubble we're in. When it does, It isn't going to be pretty. New investors generally haven't seen a bear market and will be scared out of the market for the rest of their lives, just like many in the dot com bubble.

2 minutes ago, gargamon said:

Same same as the dot com bubble. That took much longer than I expected to pop. Probably the same with the AI bubble we're in. When it does, It isn't going to be pretty. New investors generally haven't seen a bear market and will be scared out of the market for the rest of their lives, just like many in the dot com bubble.

Not sure. The suppliers of AI chips will gain. The recievers of those high performance chips dont't know yet how to turn it into any sort of massive financial gains.

14 minutes ago, gargamon said:

Same same as the dot com bubble. That took much longer than I expected to pop. Probably the same with the AI bubble we're in. When it does, It isn't going to be pretty. New investors generally haven't seen a bear market and will be scared out of the market for the rest of their lives, just like many in the dot com bubble.

Yes, young investors have never experienced a true "bear market". Nor have their pernsion funds.

4 hours ago, swissie said:

But there is a quantum of solace surrounding the investment community these days, because (unlike before), todays investors consider themselves smart enough to exit the markets, 5 minutes before "the music stops". So, all is well. Or is it?

We are due for a correction.  It's the nature of the beast. 

The reason all classes of tangible assets are increasing in value is because the value of cash is being inflated away. When the proverbial hits the fan, it is always preferable to own something physical as opposed to freshly printed paper money or a series of digits on your bank statement.

 

There is such a thing as an upwards crash, and that's what's happening now. 

 

Stock markets are due a “drawdown” in the next year or two after years of being propelled to record highs by an AI frenzy, according to Goldman Sachs CEO David Solomon.

“Markets run in cycles, and whenever we’ve historically had a significant acceleration in a new technology that creates a lot of capital formation, and therefore lots of interesting new companies around it, you generally see the market run ahead of the potential ... there are going to be winners and losers,” he said at Italian Tech Week in Turin, Italy, on Friday.

 

Solomon pointed to the mass adoption of the internet in the late 1990s and early 2000s, which led to the emergence of some of the world’s largest companies — but also saw investors lose money to what became known as the “dotcom bubble.”

 

https://www.cnbc.com/2025/10/03/goldman-sachs-ceo-david-solomon-warns-stock-market-drawdown-is-coming.html

Pumping and dumping.

When will the dumping begin?  Only a fool would say, and only another fool would heed.  If market timing was not as risky as it has been this past 30 years, there would be a lot more multi-millionaires out there.

 

On 10/4/2025 at 12:46 AM, Gsxrnz said:

The reason all classes of tangible assets are increasing in value is because the value of cash is being inflated away. When the proverbial hits the fan, it is always preferable to own something physical as opposed to freshly printed paper money or a series of digits on your bank statement.

 

There is such a thing as an upwards crash, and that's what's happening now. 

I like the term "upward crash". Inflation outside the "bread and butter" basket. How well this sort of inflation is supported by economic progress (ever increasing profits) remains to be seen.

 

Especially looking at Gold/Silver we have entered a stage that is called a "feeding frenzy". A day when Gold/Silver hasn't increased in price by less than 1 to 2 % is considered as a "dissappointing day". Irrational one might think.

 

But: Clearly, the financial community (including foreighn central banks) are realising that (for many reasons), the US $ will not remain "the currency of all currencies" eternally. No "replacement currency" available as of today. So, as Gold has been the "reserve currency" for thousands of years, why not. As long as this constellation remains intact, the price of Gold could reach astronomical hights.

 

But, lo and behold, Gold has seen massive Bear Markets. But only when "the Governments" managed to bring their financial/political "irregularities" back in order. At the current time, keen observers claim that the possibility for western governments to "rectify" political/economical "irregularities" are no more possible as certain negative and irreversable cruzial "pivot points" were broken in the recent past.

 

Holding some Gold? Hang on to it for a while longer.